Arbor Bancorp Inc., the holding company for Bank of Ann Arbor (BoAA), and FNBH Bancorp Inc., the holding company for First National Bank (FNB) in Howell, today announced the completion of their merger and resulting consolidation of First National Bank into the Bank of Ann Arbor.
The aggregate value of the merger is approximately $116.5 million.
The size of the combined organization is approximately $3.26 billion in assets, $1.89 billion in loans, and $2.83 billion in deposits based on information as of Nov. 30, 2021. The combined organization has more than 300 employees across 17 locations in Washtenaw, Livingston, western Wayne, and Oakland counties.
“The combination of these two established institutions allows us to provide a broader range of banking services to our client base, including equipment leasing and services provided by Bank of Ann Arbor’s Trust and Investment Management Group and its Technology Industry Group,” says Ron Long, president and CEO of First National.
“In addition, it will greatly expand our lending limits and capabilities in our primary market of Livingston County and will allow us to use Bank of Ann Arbor’s infrastructure to meet growing compliance and regulatory burdens, giving our team members more time to focus on our clients.”
As a result of the merger, each share of FNBH common stock was converted into the right to receive cash in the amount of $4.20 per share.
Current FNB banking centers will continue to operate under that brand until the system conversion is complete on March 21, 2022, when they will be transitioned to the BoAA name.
Sign conversion will occur simultaneously with the system conversion. Upon completion, clients will have access to a larger network of banking centers, a wider array of products and services, and the same commitment to personal service and community values established by FNB.
“We are excited to welcome the First National Bank in Howell clients, team members, and communities to Bank of Ann Arbor,” says Tim Marshall, president and CEO of BoAA. “We believe that First National is the perfect partnership for us to expand into Livingston County, which is a natural and geographical fit for Bank of Ann Arbor.”
In conjunction with the completion of the merger, BoAA announced that Stan Dickinson, the largest shareholder and vice chairman of the FNB board, will be joining the Arbor Bancorp and BoAA Board of Directors.